SLM - SoFi Stock: Analyzing The Impact Of Student Loan Debt Cancellation Plan

2024-04-15 08:00:00 ET

Summary

• Student loan debt cancellation announcements from the Biden administration continue to cast a shadow over SoFi Technologies stock.
• While potential student debt cancellations are likely to create an adverse impact on SoFi's recovering Student Loans business, any impact is unlikely to be consequential due to diversification.
• I continue with my previous rating of SOFI stock.

Introduction

Amid a broad market pullback, SoFi Technologies ( SOFI ) stock dipped by ~2% last week. While SoFi's negative price action in a bearish tape isn't surprising, fresh student loan forgiveness announcements from the Biden administration dominated the news headlines for SoFi due to its genesis as a student loan refinancing company....

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